Opening a checking account shouldn’t be this expensive!

A homeschool group finds it costs $95 to open a checking account

Hi Carol,
We are a homeschooling group for ages 9-14, designed for the purposes of socialization, support, educational and career guided opportunities as well as promoting volunteerism throughout our community.

I’m trying to open a checking account for us. I contacted the IRS and have an EIN number now. Now, the bank wants me to file a fictitious name (have to publish in Legal Notices section of newspaper for $25 minimum, and fill out a request for fictitious name through our state that costs $50. They are considering it a sole proprietorship.

Just double checking to see if this is the best way to go, as it will cost $75 minimum plus the costs of checks (about $20).

Thanks for your time,




What you described is a nonprofit organization, not a sole proprietorship.

When you obtained an EIN from the IRS did you check the box saying “Nonprofit”?
Hopefully, you used the name of your group on the EIN application as well.
If so, tell that to the bank (and show the IRS confirmation letter of your EIN) and you should not need a name registration.

If not, then you need to recontact the IRS. Close down the EIN they gave you and get one in the name of your group as a nonprofit organization (probably a 501c7 social club).

Read my article here on nonprofit social clubs:

I hope that helps.


Carol Topp, CPA


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